As Tesla owners trade in their electric vehicles at record rates and the company’s sales plummet worldwide, top Trump administration officials have crossed ethical and legal boundaries to promote the struggling car manufacturer’s stock.

Commerce Secretary Howard Lutnick made the most explicit pitch during a Fox News appearance on Wednesday, telling viewers directly: “I think if you want to learn something on this show tonight, buy Tesla. It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again.”

The statement appears to violate federal ethics rules that explicitly prohibit executive branch employees from using their public office “for the endorsement of any product, service, or enterprise.” Such promotional activity from government officials for a specific company’s stock is nearly unprecedented in modern American politics.

Jordan Libowitz, spokesperson for Citizens for Responsibility and Ethics in Washington, noted that Lutnick’s comments could be interpreted as attempting to enrich Tesla CEO Elon Musk, who holds a dual role as a government official leading Trump’s Department of Government Efficiency (DOGE).

“It adds to a growing perception that the Trump administration is trying to help Elon Musk,” Libowitz said.

The timing of these promotional efforts coincides with a disastrous period for Tesla. The company’s stock has plummeted 42% year to date, with sales declining dramatically across all major markets.

In Europe, Tesla registrations fell 44% in February compared to the previous year, following a similar 45% decline in January, according to data from market researcher Dataforce. The collapse was particularly severe in Germany—Tesla’s largest European market—where sales plunged 76%.

Similar patterns have emerged in other key markets. U.S. sales dropped 11% in January, while Chinese sales fell 49% in February, according to the China Passenger Car Association.

Benjamin Kibies, analyst at Dataforce, described Tesla’s situation as “the perfect storm,” citing multiple factors including model changeovers, declining fleet sales, and growing consumer resistance to the brand.

Evidence suggests that Tesla is facing significant backlash against Musk, who has taken controversial political positions globally while serving as a key adviser to President Trump on cutting government spending. Protests have targeted Tesla facilities across Europe and North America, with some escalating to arson attacks on dealerships and charging stations.

In Vancouver, organizers removed Tesla from the city’s auto show, citing safety concerns. Meanwhile, eight Teslas were burned in an arson attack on a dealership in southern France, and similar incidents have occurred in the U.S., with fires set at Superchargers in Boston and shots fired at an Oregon showroom.

The reasons for Tesla’s decline extend beyond political controversies. The company faces increasingly stiff competition from established automakers and new EV entrants, many offering competitive pricing and newer technology. Tesla hasn’t launched a new volume model since late 2019, and its much-hyped Cybertruck launch has been a flop.

“Competitors have not only caught up in terms of model range and technology, but they have also slashed their prices, as they must bring down their CO2 emissions to avoid fines,” Kibies noted.

Tesla owners themselves are voting with their keys. According to data published Thursday by car shopping site Edmunds, March represented “the highest ever share” of Tesla trade-ins toward new or used vehicles from other brands.

Jessica Caldwell, head of insights at Edmunds, observed: “As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”

Despite these alarming fundamentals, retail investors have been aggressively buying Tesla stock during its decline. Data from JPMorgan shows positive net retail buying for 12 consecutive days, totaling $7.3 billion—the highest magnitude among all past “buying streaks” in over a decade.

Meanwhile, Tesla insiders have been heading for the exits. Since November, company insiders including board directors, the CFO, and Musk’s brother Kimbal have sold a combined $335.2 million of Tesla stock, mostly at prices between $300 and $400 per share. The stock traded at about $246 when this article was published.

The pattern raises questions about whether administration officials are helping Musk and other insiders offload shares to unsuspecting retail investors before the company’s expected poor first-quarter earnings.

Market analysts have noted a repeated pattern over the past two weeks: retail investors bid up Tesla’s price, followed by large institutional funds selling massive amounts of shares, dropping the price back down.

The situation highlights the unprecedented conflicts of interest created by Musk’s dual role as both a government official and CEO of multiple public companies. Before assuming leadership of DOGE, Musk spent approximately $290 million last year to help propel Trump back to the White House.

The Tesla brand has suffered accordingly. Its brand value fell by 26%, or about $15 billion, in 2024—a second straight annual decline, according to research and consulting firm Brand Finance.

As the company prepares to release its first-quarter earnings, market experts warn that the results could further devastate Tesla’s stock price, leaving retail investors with heavy losses while insiders who sold at higher prices escape the worst of the damage.